There is Good News for Mississippi citizens as their administration is going to provide an enhancement in social security benefits. According to the Social Security Administration announcement, 2025 shall see an improvement of 2.5% in welfare benefits so as to enable them to control expenses that are in the process of rising.
An increase happens in the monthly pay of social security distributed among qualified residents. The Commissioner of Social Security, Martin O’Malley, declared in October 2024 that the recipients of the Social Security and SSI program will get an increase in their payments from 1st January 2025.
Good News for Mississippi
Residents have faced financial crises due to low income and continuous increases in their basic living expenses. Citizens have struggled to keep pace with rising inflation rates and are expecting to receive financial support from their authorities. The Social Security Administration is one of the largest groups offering financial support to the most vulnerable people in the country.
Every year, the SSA determines the payment amount based on the cost of living adjustment to maintain the purchasing power of the citizens. Now, in 2025, it is Good News for Mississippi residents to receive an increase of 2.5% in their payments from the department.
Social Security in January 2025 Overview
| Authority | Social Security Administration |
| Name of Program | Social Security & SSI |
| Country | USA |
| Increase 2025 | 2.5% |
| Starting Payment | Starting January 1, 2025 |
| Beneficiaries | Seniors, disabled, spouses, children, others |
| Category | Government Aid |
| Official Website | https://www.ssa.gov/ |
Mississippi Social Security COLA Increase
Over the last ten years, the mean COLA (Cost-of-Living Adjustment) raise was around 2.6%. The most significant raise was in 2023 at 8.7%. In 2024, Social Security recipients saw a COLA of 3.2 per cent, supporting more than 68 million recipients across the country. The Supplemental Security Income program also started distributing increased benefits to about 7.5 million people.
In Mississippi, for example, as of December 2023, more than 469,500 pensioners rely on Social Security benefits. It was then disbursed to 106,000 pensioners, 43,000 disabled persons, 14,000 spouses, 59,000 children, and widowed parents. These allocations underscore the ongoing federal initiatives towards helping the needy population with living cost inflation.
Full Retirement Age Changes for Social Security
The full retirement age has gradually increased for younger age groups. For instance, individuals born between 1943 and 1954 reached full retirement age at 66, whereas those born in later years face incremental increases in the full retirement age.
Those born in 1955 could begin collecting benefits at age 66 and 2 months, increasing incrementally for subsequent birth years to 67 for those born in 1960 or later.
How Does the Federal Agency Determine the COLA Every Year
The annual COLA is calculated using the CPI-W as defined in the Social Security Act. Since 1975, Social Security benefits have been increased annually without congressional approval, which was required but not provided on an annual basis since 1975. This means that COLA keeps up with inflation so that benefits keep pace with the cost of living.
| Year | COLA Increase |
|---|---|
| 2015 | 1.70% |
| 2016 | 0% |
| 2017 | 0.30% |
| 2018 | 2% |
| 2019 | 2.80% |
| 2020 | 1.60% |
| 2021 | 1.30% |
| 2022 | 5.90% |
| 2023 | 8.70% |
| 2024 | 3.20% |
This year’s adjustment is the lowest since 2021, when it was 1.3%, according to the Bureau of Labor Statistics. The COLA system reflects efforts to maintain purchasing power for recipients, adapting benefits to economic changes affecting urban wage earners and clerical workers.
Social Security 2025 Adjustments and Contributions
Every year in January, Social Security makes adjustments to the monthly benefits, which are determined by average pay increases.
- The maximum taxable wage will increase from $168,600 to $176,100. Self-employed persons pay 12.4% in Social Security tax, and employers and employees each pay 6.2%.
- In 2023, total income for the OASI and DI trusts reached $1,351 billion, which is comprised of $1,233 billion from net payroll taxes, $67 billion from interest, and $51 billion from benefit taxes.
Social Security Tax and Earnings Limit for 2025
When the individual’s income is more than $62,160, taxes are withheld from their Social Security benefits. The maximum payment for an individual in 2025 who will reach their FRA will be $62,160.
However, at the FRA, there is no earnings cap remaining for the balance of the year. This will ensure equity without limiting the workability of beneficiaries at that age from continuing to work without any limitation once they attain their full retirement age.
FAQs
What is the maximum increase people will receive in their Social Security benefits?
2.5% is the annual increase from the cost of living adjustments.
Why do people get the COLA increase in their payments?
SSA adjusts the amount based on COLA to ensure financial stability and preserve residents’ purchasing power.
How is the COLA calculated?
The SSA determines the COLA from the CPI-W data of the third quarter of the month.
Robert is a finance writer with 3 years of experience. He writes about topics like finance, government aid, and market trends. His goal is to help readers understand financial concepts and make better decisions.